The Jockey Club Fact Book - National Economic Impact Study

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Economic Impact Of The Racing Sector

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National Economic Impact Study

In 1995, the American Horse Council commissioned Barents Group LLC to undertake a major study of the horse industry in the United States which would not only establish the current size of the industry but would also, for the first time, establish its impact on the national economy.

Highly significant to anyone associated with the horse, the national report was released in December, 1996. Excerpts follow:

Impact of the Horse Industry on the US Economy

Total Impact on the US Gross Domestic Product

$112.1 billion

Including direct, indirect and induced effects.

Total Full-Time Equivalent Jobs Generated

1,404,400

Including 192,900 (or 5.7 per cent) of the Agriculture, Forestry & Fishing industrial sector; and 145,600 (or 10.9 per cent) of the Amusement & Recreation Services industrial sector.

Total Taxes & Fees Paid including

$1.9 billion

Federal	708.9 million
State	467.4 million
Local	722.4 million

Direct Value of Horse-Related Goods and Services

$25.3 billion

Including $5.3 million (or 4.5 per cent) of the total Agriculture, Fisheries and Food industrial sector; and $4.7 billion (or 9.0 per cent) of the Amusement & Recreational Services industrial sector.

Gross Domestic Product Contribution Compared with Other Industries

Apparel and other textile products manufacturing	27.8 billion
Horse production and entertainment services	25.3 billion
Motion picture services	24.8 billion
Furniture and fixtures manufacturing	19.0 billion
Full-time equivalent direct employment by the horse industry	338,500

National Horse Industry Employment Compared with Other Industries

Motion picture services	441,000
Horse production and entertainment services	339,000
Railroad transportation	241,000
Radio and Television broadcasting	207,000
Petroleum and coal products manufacturing	149,000

Size Of The Horse Industry

Various Statistics

Number of Horses	6.9 million
Number of Industry Participants	7.1 million
Including owners (1.9 million), non-horse-owning service providers such as jockeys, drivers, trainers,veterinarians and horse transportation providers; race tracks; shows; employees of these groups; and family members of owners and other volunteers involved in the care of horses without pay excluding spectators.
Median Income of horse-owning families	$60,000
Ownership is broad-based among income classes with 38 per cent earning under $50,000 and 21 per cent over $100,000.

Economic Relationship of Breeding & Racing

Number of Horses in Training	397,000
Number of Horses Involved in Breeding for the Race Track	328,000

Total	725,000

Economic Impact of the Racing Sector

	DIRECT GDP CONTRIBUTION*	GDP ECONOMIC IMPACT*	FTE JOBS PROVIDED	FTE JOBS GENERATED

Race Tracks & OTB Operations	3,196	9,895	36,300	131,600
Horses in Training	2,900	16,715	52,000	214,300
Breeding	1,288	7,423	30,800	126,900

Total	7,384	34,033	119,100	472,800

* Dollars in Millions

Gross Purses

YEAR	UNITED STATES*	(PER CENT CHANGE)	CANADA*	PUERTO RICO*	STARTERS	TOTAL*
1988	676.8	3.4%	65.3	11.1	91,649	753.2
1989	706.9	4.4%	68.8	12.3	92,587	788.0
1990	714.5	1.1%	69.6	12.4	90,938	796.5
1991	698.7	-2.2%	65.2	12.6	88,189	776.5
1992	709.6	1.6%	68.4	13.6	84,755	791.6
1993	692.1	-2.5%	63.2	14.4	80,238	769.7
1994	718.4	3.8%	64.0	14.8	76,539	797.2
1995	761.6	6.0%	74.7	15.9	73,870	852.2
1996	792.7	4.1%	86.3#	18.0	71,982	897.0
1997	851.5	7.4%	68.7	18.2	70,370	938.4
1998	904.0	6.2%	74.3	15.2	70,291	993.5

Purses include monies not won and returned to state breeder or other funds, but do not include retroactive payments. In Puerto Rico, retroactive payments represent a substantial part of total prize money distributed, totaling $11.7 million in 1998.

* Dollars in Millions
# Includes Breeders' Cup Day at Woodbine

Thoroughbred Racing and Breeding Worldwide 1997

Today’s world of the Thoroughbred reaches to the four corners of the Earth, transcending geographical, political and racial boundaries. While the following statistics demonstrate the overall strength of horse racing and breeding in the United States in comparison with other countries, they only hint at the tremendous contribution made by the US to the Thoroughbred industries of other countries.

COUNTRY RACES PURSES ~ BETTING
HANDLE ~ MARES REGISTERED
FOALS STARTS STARTERS

Argentina 7,753 38.73 394.77 12,022 6,642 68,796 12,860

Australia 22,498 171.01 7,415.27 30,132 17,926 211,117 32,020

Brazil 8,060 36.9 258.67 6,212 3,839 68,523 13,483

Canada 5,655 68.7 527 3,635 2,475 42,697 6,506

France 4,301 78.19 6,073.61 7,725 3,834 46,429 7,144

Germany 2,944 25.46 485.67 2,726 1,433 28,684 4,654

Great Britain 4,143 65.7 8197.69 10,291 5,220 44,111 6,786

India 2,698 6.95 149.5 3,789 1,891 23,245 4,345

Italy 5,029 73.98 3,283.68 2,780 1,827 42,039 ***

Japan 26,763 790.23 36,150.68 11,617 8,336 264,503 30,097

New Zealand 2,949 17.16 639.13 9,638 4,950 33,204 5,507

Peru 1,824 10.31 34.3 1,255 560 19,035 1,680

Philippines 2,481 6.82 71.46 665 276 24,739 2,000

South Africa 4,178 34.12 1,266.53 5,252 3,164 49,319 7,805

South Korea 1,078 32.08 1,833.34 852 384 12,686 1,173

Turkey 1,806 53.09 1,172.29 895 370 18,865 1,672

United States 57,832 851.5 12,542 54,644 32,200 476,615 64,099

Venezuela 2,896 12.33 64.96 2,947 1,406 28,356 3,680

Total 177,016 2,540.75 96,233.47 186,907 107,748 1,611,634 224,074

Notes: The Total reflects world wide statistics though this chart does not list every reporting country. In some cases, Betting Handle includes harness racing. Wagering statistics include bookmaking in countries where such activities are legal. US $ conversions at the French franc at 1.00 FF = US $0.16694. *** not reported ....# no wagering...~ Dollars in Millions

Source: International Statistical Survey of Horse Racing and 1997 Statistics, compiled by France,Galop and presented at the 32nd International Conference of Racing Authorities, Paris, France, October 5, 1998.

COUNTRY	RACES	PURSES ~	BETTING HANDLE ~	MARES	REGISTERED FOALS	STARTS	STARTERS

Argentina	7,753	38.73	394.77	12,022	6,642	68,796	12,860
Australia	22,498	171.01	7,415.27	30,132	17,926	211,117	32,020
Brazil	8,060	36.9	258.67	6,212	3,839	68,523	13,483
Canada	5,655	68.7	527	3,635	2,475	42,697	6,506
France	4,301	78.19	6,073.61	7,725	3,834	46,429	7,144
Germany	2,944	25.46	485.67	2,726	1,433	28,684	4,654
Great Britain	4,143	65.7	8197.69	10,291	5,220	44,111	6,786
India	2,698	6.95	149.5	3,789	1,891	23,245	4,345
Italy	5,029	73.98	3,283.68	2,780	1,827	42,039	***
Japan	26,763	790.23	36,150.68	11,617	8,336	264,503	30,097
New Zealand	2,949	17.16	639.13	9,638	4,950	33,204	5,507
Peru	1,824	10.31	34.3	1,255	560	19,035	1,680
Philippines	2,481	6.82	71.46	665	276	24,739	2,000
South Africa	4,178	34.12	1,266.53	5,252	3,164	49,319	7,805
South Korea	1,078	32.08	1,833.34	852	384	12,686	1,173
Turkey	1,806	53.09	1,172.29	895	370	18,865	1,672
United States	57,832	851.5	12,542	54,644	32,200	476,615	64,099
Venezuela	2,896	12.33	64.96	2,947	1,406	28,356	3,680

Total	177,016	2,540.75	96,233.47	186,907	107,748	1,611,634	224,074

Diversity Of The Horse Industry

By Activity

The service produced by three activities (racing, showing and recreation) each contribute over 25 per cent of the total value of goods and services produced by the industry.

	NUMBER OF HORSES	NUMBER 0F PARTICIPANTS	GDP* CONTRIBUTION (PER CENT)	GDP* ECONOMIC IMPACT (PER CENT)	FTE EMPLOYMENT (PER CENT)	FTE JOBS GENERATED (PER CENT)

Racing	725,000	941,400	7,383 (29.2)	34,033 (30.4)	136,400 (40.3)	472,800 (33.7)
Showing	1,974,000	3,607,900	7,390 (29.2)	34,802 (31.1)	105,000 (31.0)	441,000 (31.4)
Recreation	2,970,000	4,346,100	6,796 (26.9)	28,300 (25.3)	56,400 (16.7)	316,900 (22.6)
Other	1,262,000	1,607,900	3,725 (14.7)	14,922 (13.3)	40,600 (12.0)	173,800 (12.4)

Totals	6,931,000	7,062,500	25,295	112,058	338,500	1,404,400

* Dollars in Millions

By Demographics

The horse industry includes participants from all socio-economic strata.

Distribution of Households by Income Class

1993 HOUSEHOLD INCOME CLASS	PER CENT OF ALL HOUSEHOLDS	PER CENT OF ALL HORSE-OWNER HOUSEHOLDS	PER CENT OF RACEHORSE-OWNER HOUSEHOLDS

Under $25,000	32.3	14.1	10.0
$25,000 – 50,000	32.7	24.2	26.6
$50,000 – 75,000	19.4	25.7	22.9
$75,000 – 100,000	7.9	12.9	18.4
Over $100,000	7.6	21.3	18.0
Unclassified	0.0	1.8	4.1

Total	100.0	100.0	100.0

By Location

The horse industry is active in every state of the union, and contributes to both the urban and rural communities.

	GDP* CONTRIBUTION	FTE** EMPLOYMENT

Urban	2.8	45.8
Rural	22.5	292.7

Total	25.3	338.5

*Dollars in Billions
** In Thousands

Major funding support for the Economic Impact Study was provided by The Jockey Club, American Quarter Horse Association, Thoroughbred Owners and Breeders Association, Keeneland Association, Breeders’ Cup Ltd., Kentucky Thoroughbred Association and several concerned and leading members of the horse community. Barents Group LLC is the specialized economic and fiscal consulting unit of KPMG Peat Marwick LLP.